Establishing a qualifying recognised overseas pensions scheme framework for non-Jersey residents has been in the pipeline for some time, with Jersey Finance having set up a working group to explore international pensions more than two years ago.
On this working party, the Jersey Pension Association, were representatives from a number of pension trustees, including, Vantage, RBC and Fairway Group; and law firms Carey Olsen, Bedel and Ogier.
One of those representatives, Richard Packman, managing director of Vantage, said his company already has a QROPS ready for overseas clients.
The introduction of QROPS for non-Jersey residents was made possible by an amendment to the local income tax rules which was passed at the time of the state’s Budget in September.
The amendment, specifically, Income Tax Amendment (no.44) Jersey Law, was aimed at increasing pension flexibility for residents of Jersey, making it possible for them to move their pensions in and out of the jurisdiction. As a by-product it also made it possible for non-Jersey residents to invest in pensions there.
Packman explained that, because QROPS have been used in Jersey for some time, albeit only for residents which have arrived from the UK, trustees and practioners are used to adhering to HM Revenue & Custom’s strict reporting requirements.
